“Ideas are easy. Implementation is hard.” – Guy Kawasaki

You have a wonderful idea that is going to change lives. However, it’s not easy to get someone to fund your dream, especially when you have just started. You need to prove the potential of the idea, and most of the time, the fund to do so comes from your own pocket.  If you decide to finance your dream, here are 8 useful tips.

  1. Save

To bootstrap your venture, first and foremost, you need some capital to get you started. Dedicate an amount that will help you last until the business model is validated. While you can take up loans, it’s important to save – the same way as buying a car or a house. If you see yourself being an entrepreneur somewhere down the road, start saving now.

  1. Find a business model that generates cash fast

The bootstrapping method works well for asset-light businesses. If you have to make a big investment upfront, your reserve may not last until your first payment comes. When you don’t have a big fund, it’s extremely important to generate cash fast to sustain your business.

  1. Always focus on your customers

There’s no other way around. Your customers are the source of your fund now, so you have to focus ounce of energy you have on finding more customers and creating more sales. No more diverting your attention to satisfying your investors, the only thing you can do to survive is to bring in customers and make them happy.

  1. Practice good financial management

What you are spending is literally your money. Bootstrapping doesn’t give you a false sense of having a surplus amount in your bank account. Thus, you really need to pay attention to every dollar spent and make sure that it serves the business. Frugality and good financial management are crucial in starting a business.

  1. Don’t outsource unless it’s unavoidable

When you start a company, most of the time, you will find yourself wearing multiple hats at the same time to keep the expenses low. If there are tasks that you can manage by yourself, do it. Leverage on your own skills set, free tools and learn new skills if you need. There are plenty of free and freemium tools out there that enable you to do plenty without the need to hire a full-time employee. From project management to design and marketing, you will be able to cover basic needs while saving some money. A little bit here and there goes a long way.

  1. Spend when it’s necessary

While you need to watch your budget, it’s important to know when you need to spend. Cheaper solutions may save you a few bucks now, but they may create unwanted issues in the long run. At that time, migrating to a proper service provider will be costly and painful. Make sure that the backbone of the business is strong from the very beginning.

  1. Test, tweak and pivot fast

Before fully launching a new feature, product or service, test the market. Test as many details as you possibly can, gather consumers’ feedback and tweak accordingly. If you have determined that an idea doesn’t work out, you can immediately change to a new direction. The perk of bootstrapping is that you are completely in charge and can take any direction you want.

  1. Stay open-minded

Instead of selling people what you think they need, listen to your customers. They will tell you what they are looking for, and that may differ from what you think. It’s important to have an open mind, one that is willing to learn and adjust.

The article is written by Khanh Tran from SriLanka-Villa.com.

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